Apply for the Saskatchewan Manufacturing and Processing Exporter Tax Incentive
Overview
The Manufacturing and Processing (M&P) Exporter Tax Incentive provides non-refundable tax credits to eligible corporations that expand the number of M&P-related full time employees above the number that were employed in 2014. Eligible businesses are those that derive at least 25% of revenues from the export to the rest of Canada or internationally of their manufactured goods each year and that:
“manufacture or process” goods for sale as defined in the federal Income Tax Act; or
are principally involved in the commercial development of “new economy” products for export, including interactive digital media products and creative industry products.
The incentive owers an eligible business non-refundable tax credits equal to $3,000 in respect of each incremental full- time employee for each of the 2015 through 2019 taxation years.
The M&P Exporter Tax Incentive will also provide non-refundable tax credits to eligible corporations that expand the number of their full- time employees who primarily conduct activities that are typically considered to be “head office” functions. This portion of the incentive will owner an eligible business non-refundable tax credits equal to $10,000 in respect of each incremental full- time “head office” employee for each of the 2015 through 2019 taxation years.
Eligibility
Hiring Incentive
Eligible corporations are those that are primarily engaged in manufacturing and processing, or undertaking creative industry activities at a facility in Saskatchewan and at least 25% of revenues of that activity are generated through export.
Head Office Incentive
For the head owice portion of the incentive, eligible corporations must have an office located in Saskatchewan where at least 10 employees with a current payroll of at least $1,000,000 are performing at least five of nine prescribed head office functions. Prescribed head office functions include strategic planning, corporate communications, taxation, legal, marketing, finance, human resources, information technology, and procurement.
A head owice expansion will only qualify for the incentive if incremental staffing equals the greater of 10 new employees and a 20% increase over the 2014 base level of employment. A new “head office” will only qualify if it consists of a minimum of 10 employees performing the designated head office functions with a payroll exceeding $1,000,000.
Corporations applying for a Certificate of Eligibility for the head owice incentive must have reached the growth threshold in order to receive a Certificate of Eligibility.
How to Apply
To apply for an M&P Exporter Tax Incentive:
- Complete a Certificate of Eligibility Application.
- Apply to the Ministry of Trade and Export Development for a Certificate of Eligibility. Include a copy of
the base year (2014) T4 Salaries and Wages Summary as submitted to Canada Revenue Agency (CRA). If you are an eligible corporation utilizing the deeming provision, include a copy of: The base year (2014) T4 Salaries and Wages Summary for each associated corporation of the corporate group; and
The base year (2014) T2 Corporation Income Tax Return Schedule 9 – Related and Associated Corporations.
- If your corporation meets the initial eligibility criteria, Trade and Export Development will issue a Certificate of Eligibility that will establish the base year (2014) employment levels.
- File the current year corporation income tax return with CRA.
- Once the current year corporation income tax return has been assessed and a T2 Notice of Assessment from CRA has been received, complete an M&P Exporter Tax Credit Claim Form and submit it to the Ministry of Finance. Include a copy of the:
Certificate of Eligibility as issued by the Ministry of T rade and Export Development;
Current year T4 Salaries and Wages Summary as submitted to CRA;
Current year T2 Corporation Income T ax Return;
Current year Notice of Assessment or Reassessment; and
Current year financial statements as presented to shareholders.
If you are an eligible corporation utilizing the deeming provision, include a copy of:
T4 Salaries and Wages Summary for each associated corporation of the corporate group; and
The T2 Corporation Income T ax Return Schedule 9 – Related and Associated Corporations.
A claim form will need to be submitted for each eligible year .
- The Ministry of Finance will verify the claim form and provide:
A rebate calculated in accordance with program legislation; or
A written notice indicating that the corporation is not entitled to the rebate and the reasons for the determination.
Saskatchewan Manufacturing and Processing Exporter Certificate of Eligibility Applications can be mailed to:
Ministry of Trade and Export Development
M&P Exporter Tax Credit Program
1000, 2103-11 Ave
REGINA SK S4P 3Z8
Manufacturing and Processing Exporter T ax Incentive Claim Forms can be mailed to:
Ministry of Finance
Revenue Division
Po Box 200
REGINA SK S4P 1Z6
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